J M Baxi to acquire Allcargo's project forwarding & logistics business
It has also provided a binding offer to Lift and Shift India, to acquire its heavy and over-dimension cargo business.
J M Baxi Heavy has signed a definitive agreement to acquire Allcargo Logistics' project forwarding & logistics business.
It has also provided a binding offer to Lift and Shift India, to acquire its heavy and over-dimension cargo logistics business. Lift and Shift has accepted the binding offer, which is subject to the execution of a definitive agreement for the business transfer between the parties. Both transactions are subject to completion, which is expected in the coming weeks. On completion, both businesses will merge into J M Baxi Heavy, a wholly-owned subsidiary of J M Baxi Ports & Logistics.
Lift & Shift brings with it, a specialization in engineered logistics services for the niche and growing category of super-heavy lifting, shifting and multimodal transportation. It caters to sectors such as petrochemicals, hydrocarbon, fertilisers, renewable energy, power generation, civil construction, large scale manufacturing and prominently the offshore oil & gas industry.
Together, J M Baxi Heavy and Lift & Shift will have the largest fleet of speciality equipment for over-dimensional & heavy cargo logistics like Self Propelled Modular Trailers (SPMT), barges and lifting equipment. This will enable J M Baxi Heavy to reach a wider customer base, improve its service proposition and create synergies in efficiency building, while being able to mobilise equipment and personnel swiftly, anywhere within India.
Allcargo's project forwarding and logistics business will add to J M Baxi Heavy's existing network with enhanced geographical presence in the Indian sub-continent and Africa, as well as diverse clientele in the Project Forwarding and Logistics sector. Additionally, backed by its excellence in customised lifting and transportation solutions, Allcargo's expertise in project forwarding and long-haul transportation of heavy/over-dimension cargo will further bolster J M Baxi Heavy's existing strengths in this segment.
Dhruv Kotak, managing director, J M Baxi Group said, "The Indian economy has strong fundamentals for growth, and this acquisition comes at a time where there is an upsurge in capital expenditure in various sectors in the country. We are just beginning to see the cycle turn. The next decade will see momentum in demand bolstered by the National Infrastructure Pipeline with a size of US$1.5 trillion. The acquisition of the two business divisions of Allcargo and Lift & Shift will add immense value, weave in synergies with the current line of business at J M Baxi Heavy and expand opportunities for the organization to be present in high growth categories. Through this, we will be able to cater to our customers across the infrastructure space in the Indian and African sub-continents. The acquisitions will further strengthen, JM Baxi's strategy for long term growth and enable us to continue being an active participant in the Indian growth narrative."
Adarsh Hegde, joint managing director, Allcargo Logistics, said, "India, today, is looking ahead to bold business targets. Achieving them definitely needs robust infrastructure development, and J M Baxi Group has truly proved its capabilities in contributing to it. Allcargo and JM Baxi are happy to partner with each other in making this transaction successful. This will be good for industry, customers and employees as businesses and capabilities come together. At Allcargo, this exit is aligned with our strategy to focus on Allcargo Group's core business. I have no doubt that the new entity under J M Baxi Group leadership will play a key role in the project logistics support for infrastructure development, not just in India but also other developing countries. My best wishes to the teams."
Romil Parikh, director, Lift & Shift, added: "The merger of our company into the J M Baxi fold has exciting potential for us. There is a strong demand for end-to-end solutions and with the largest specialised equipment fleet on the subcontinent coupled with J M Baxi's terminal infrastructure we are confident that we will be able to add tremendous value to our clients."
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